Processing a backpay becomes necessary when there has been a pay increment effective from a prior period which effectively means that the employee has been underpaid. The amount of the underpayment needs to be calculated taking into account deductions, including the additional PAYE, that would be due on the increased pay rate.
The backpay amount can be calculated manually and the value entered manually. Alternatively, use the Belina backpay module to have all amounts calculated automatically for you.
For more information about how to process backpay see this link.
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